Analysts Are Betting On Sahara International Petrochemical Company (TADAWUL:2310) With A Big Upgrade This Week

Celebrations may be in order for Sahara International Petrochemical Company (TADAWUL:2310) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Sahara International Petrochemical will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 4.5% over the past week, closing at ر.س53.50. Could this big upgrade push the stock even higher?

Following this upgrade, Sahara International Petrochemical's five analysts are forecasting 2022 revenues to be ر.س10b, approximately in line with the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ر.س8.8b in 2022. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.

See our latest analysis for Sahara International Petrochemical

We'd point out that there was no major changes to their price target of ر.س49.79, suggesting the latest estimates were not enough to shift their view on the value of the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Sahara International Petrochemical at ر.س60.50 per share, while the most bearish prices it at ر.س37.00. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Sahara International Petrochemical's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 1.6% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.7% annually. So it's clear that despite the slowdown in growth, Sahara International Petrochemical is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Sahara International Petrochemical this year. Analysts also expect revenues to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Sahara International Petrochemical.

Want more information? We have analyst estimates for Sahara International Petrochemical going out to 2024, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.